£11,000 to save,Is Santander 1-2-3 the best option

colsten

mel48rose wrote: »

I thought Martin said in his programme last week that this was the best only if you had the max 20K in there.

It all depends on how "best" is defined. If you are looking for the best interest rate for £20K, the 123 isn't the answer as you can get over 4% on £20K. This has been the case for a number of years.

Superscrooge

BirnamBear wrote: »

My take on Martin's article is that this would be best option.Any advice on the best way to save this amount of money to get maximum benefit.
It can go somewhere and not be touched.

Santander 123 is the simple option in that you only need to open one account and get 3% interest, although don't forget the £5 monthly fee.

But if you are willing to split your money between several different accounts you can earn interest up to 5% (or even 6% if you open regular savers linked to current accounts) .

Sam_J12

I think some posters are a bit harsh here. Santander 123 is not a bad option if you get a decent amount in cashback. A lot of people simply don't want the hassle of 4+ current accounts, setting up DDs, transferring money. The lack of hassle in having just one account and giving up a few quid is certainly worth it for some people.

Eco_Miser

Sam_J12 wrote: »

I think some posters are a bit harsh here. Santander 123 is not a bad option if you get a decent amount in cashback. A lot of people simply don't want the hassle of 4+ current accounts, setting up DDs, transferring money. The lack of hassle in having just one account and giving up a few quid is certainly worth it for some people.

The OP asked if Santander is the best option. It isn't, and lots of posters have told him so, along with suggestions as to what may be the best.
To just cover the fee requires cashback @ 3% on £2000, obviously more than that if some is at 2% or 1%. Then you need to cover the rate differential...

Sam_J12

Eco_Miser wrote: »

The OP asked if Santander is the best option. It isn't, and lots of posters have told him so, along with suggestions as to what may be the best.
To just cover the fee requires cashback @ 3% on £2000, obviously more than that if some is at 2% or 1%. Then you need to cover the rate differential...

He didn't ask for the highest interest, but the "best" way which is very subjective (incidentally, nobody has mentioned the highest interest method for £11k yet). For my grandmother, for example, opening multiple current accounts is certainly not the best way to save this money as she can barely use the internet never mind keep track of the various payments - the whole thing would just be immensely stressful for her. Santander123 would likely be one of the "best" accounts for her.

Eco_Miser

The title asks if Santander 123 is the best option.
The body asks for maximum benefit which I take as highest interest.

The actual highest interest would involve feeding £800 pm into 3 6% regular savers from 4% and 5% current accounts (and a 3% account for one month only). Since the 4% account is actually a tiered rate the calculation gets complicated - too complicated for me to bother, especially since sensibly it would involve the day-to-day income and spending of whoever was doing it.
My first response was to point the OP to the data, so he could work it out for himself.

Archi_Bald

Sam_J12 wrote: »

(incidentally, nobody has mentioned the highest interest method for £11k yet).

Posts #4 and #5 of this thread have provided all the information about savings options anybody could possibly dream to get. If people are unable to make the best out of this for themselves, I question whether they would be able to assess the value of any other suggestions.

BirnamBear

Dan83 wrote: »

£2500 Nationwide 5%
£2000 TSB 5%
£5000 Lloyds 4%
£1500 Tesco 3%

Read the T&C's, transfare some cash around each month and set up some direct debits

Thanks for all the responses.With some organisation on my part,Dan83's suggestion looks like the way to go.

BirnamBear

YorkshireBoy wrote: »

https://www.bankaccountsavings.co.uk


It won't be Santander!

A really clever link.

YorkshireBoy

BirnamBear wrote: »

Thanks for all the responses.With some organisation on my part,Dan83's suggestion looks like the way to go.

So there's only one of you? If not, there are better options.